[WSBARP] Casey v. Sudden Valley

[Rob Wilson-Hoss]

I think I just figured something out that has been bothering me for years.
RCW 64.38.025(3) says how budgets are to be adopted by the Board, and then
submitted to the membership for ratification; and the members ratify unless
a majority of the total votes rejects it. I, along with others, assumed,
based on what I still think are compelling reasons, that "budget" meant
income and assessments as well as spending. But Sudden Valley v. Casey said
that budget only refers to expenditures. I thought, and still think, this is
absolutely wrong - one of the central purposes of the statute was to make
sure that members got a right to vote on assessments, and it came about in
part because of complaints from members that Boards were just passing
assessments without member input.

 

But what I was overlooking was that the result was, the budget for
assessments, since it is not in the statutory process, comes from whatever
the individual association bylaws say. So, when the bylaws say the Board
imposes an assessment, then the Board imposes the assessment. The problem is
shrunk to those associations that have governing documents that specify more
difficult processes. And if there is nothing in the governing documents,
well, then, the nonprofit statutes, 24.03 and 24.06; and the HOA Act; and
most governing documents; say that the Board acts for the association. So
the Board sets assessments. 

 

If this helps anyone, great. If I am wrong, please tell me. 

 

Rob 

 

Robert D. Wilson-Hoss 
Hoss & Wilson-Hoss, LLP 
236 West Birch Street 
Shelton, WA 98584 
360 426-2999

www.hossandwilson-hoss.com
 <mailto:rob at hctc.com> rob at hctc.com

 

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